I Make $100,000 And Live Paycheck To Paycheck

I’ve been practicing financial planning for over 21 years, and there is a new financial phenomenon spreading like cancer.    I haven’t come up with a name for this group yet, but there is a growing population of people between the ages of 30 to 50 who make more than $100,000 per year and are literally living paycheck to paycheck.   Are these people lacking a college education? No!    Are these people lacking a comprehensive set of benefits from their employer? No!   Are these people who are having lots of money garnished from their paychecks every two weeks? No!   So how is this group getting so far behind financially while making so much money? According to a report from the Consumer Federation of America and the Consumer Planner Board of Standards, Inc., 38 percent of household live paycheck to paycheck.   In 1997, this figure was 31 percent.  (source: huffingtonpost.com)  A report from earlier this year found that 43 percent of Americans don’t ...

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Why Is Gen XY Worth Less Than Their Parents?

Common sense says it’s no surprise that older Americans are wealthier than young Americans. Simply put, they have had more time to develop a strategy, learn from their mistakes, and build long term wealth. However, would it surprise you to hear that young Americans today are doing much worse than young Americans 30 years ago? According to the Pew Research Center, households headed by the XY generation are worth 68% less than their counterparts 30 years ago. In 1984, median net worth was $11,521. In 2009, it was $3,662. The age based wealth gap has gone from a 10:1 ratio to a 47:1 ratio. These numbers seem pretty shocking, and the easy culprit would be to point at the recent problems with the economy. However, there are some pretty interesting long term trends we can look at to see why the economy may not be the only reason: Overwhelming Forces Urge You Not to Save – every day, everywhere you ...

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What If I Need A Cash Advance?

It is never fun being behind on paying your bills.  With more and more people living paycheck to paycheck, we often get the question, “what happens if I need money in a pinch?”   That question can spur many different responses based upon your individual financial situation, but what happens if you have to look for some sort of cash advance to hold you over until the next paycheck.   Obviously, you want to exhaust all of your options before you go for the cash advance.  We don’t recommend cashing out of retirement plans like your 401(k) as many people will when they look for cash as the taxes, penalties, and loss of compounded interest on your money could be detrimental to your long term retirement plans.  I need a Cash Advance – So, what to do? There are many companies that offer these types of programs to get a small loan between $100 and $1,500.  For example, companies like CashNetUSA are ...

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Roommate Issues – Just say Buxfer!

With the economy tightening, and many people living paycheck to paycheck, we are seeing a return to more roommate situations to share expenses.   This can range from the traditional 2 bedroom apartment, to a single family residence renting out a room, or someone creating a basement apartment. When you have one or two roommates, usually one person takes the lead in handling the bills and tracking the expenses.  This can often be an arduous task, and lead to arguments over whether the numbers are accurate. One great website that can track those pesky roommate expenses is www.buxfer.com. This website is a free personal expense management site with one specific area dedicated to helping you track expenses between multiple parties. Using a site like this can keep the accounting simple, and avoid putting the little yellow sticky on your roommate’s door asking for this month’s portion of the telephone bill. 11680 Great Oaks Way, Suite 175 | Alpharetta, GA 30022 Phone ...

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9 financial tips for Generation Y

9 financial tips for Generation Y. Perhaps not surprisingly, more than half of employees between 21 and 32 say that they're living paycheck to paycheck, according to a recent survey by insurer Metlife. Nearly three-fourths of respondents are concerned about making ends meet. Fortunately, you can get off to a sound financial start with these nine tips. ...

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